Can I liquidate my portfolio before final loan deadline?

Yes, Bondora has an active Secondary Market for selling loans with discount or mark-up.

Selling investments manually on Secondary Market

Please be advised that Bondora is a long-term investment, meaning an investment horizon of more than 5 years. Currently the only way to make sure you do not damage your returns when existing is by stopping reinvestments and running off your portfolio, taking cash out as loans are repaid on a monthly basis.

Selling loans can result in a loss of original principal, as the secondary market typically does not provide high enough premium for current loans to compensate for the non-performing part of the portfolio. Therefore selling loans should be done cautiously.

The speed of the sales process depends on the market demand. In general, current loans are more liquid and will be sold within a day in case there is no premium added or there is a small premium. Delinquent loans may take more time or the sale can be unsuccessful. You will receive the funds to your Bondora account as soon as other investors have purchased your investments.

To sell your investments on Secondary Market, log in with your Bondora credentials to see an overview of your investments on Investments page. Choose the loans which you would like to sell by clicking on cart icons. When finished picking the loans and adjustments are made, confirm the sale with the "Sell all" button and the loans will be put on sale.

Faster liquidity with one-click sell button

Putting your investments on sale is easy. You will be able to define the amount of capital you need and the system will do the rest. This feature is neatly packaged on the Dashboard. Loans will be put on sale with current loans first and overdue ones thereafter with newest loans sold first before seasoned ones. The sale price will be calculated as the principal balance less principal payments overdue by schedule. In other words if you put your entire portfolio to sale then it will be priced the same way as the account value is calculated.

To read more about it, please kindly refer to following article published in our Blog.

Research and select investments to sell

In the Public Reports -> “Secondary Market Transactions History” you can see all the data points we track in the secondary market transaction. This report provides some useful data to analyse and understand the patterns or trends present in Secondary Market transactions.
The first data point you want to look at to understand how the secondary market works is the “Result” data point where you can search for all transactions or only the successful ones. Successful means the loan was sold on the market. Maybe there is something to learn from the “Failed” ones too, which are the sales that didn’t go through. Failed loans might leave clues for you as to why those loans did not sell so you can successfully sell yours. For instance, too big of a price markup may have meant no sale as the price was too high.
 
Bondora cannot give any investing advice, but according to the statistics it is more probable to sell the non-performing part of your portfolio using discount. It usually requires a more active approach and experimenting with different discounts, to see what works best.
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